Browse Forums Building A New House 1 Feb 25, 2009 11:50 am Hi,
Just wondering what everyone else thinks of this. We are considering building with NBG and their Build now pay later sounds very attractive to me as we wouldn't have to make any progress payments. I just rang to find out what the conditions of this promotion are and one thing which made me think twice about it is that the finance is organised through the Commonwealth Bank. I just assumed if and when I decided to start building I would call my mortgage broker and he would re-finance or do whatever he needs to do with my current loan with ING. I'm not sure I want to go with a big bank. Suppose I should call my mortgage broker and see what he thinks. Re: NBG Build now Pay Later offer 2Feb 25, 2009 11:59 am Unless your avoiding mortgage insurance refinancing straight away will probably cost you close to $15000...
~$10000 for mortgage insurance, plus most places make you pay a fee of 1% of the loan oweing if you leave within a few years. Also, with that setup you may be paying stamp duty on the whole cost, not just the land cost, check that first as it will be a fair bit of money Re: NBG Build now Pay Later offer 3Feb 25, 2009 12:19 pm Hellman109 Unless your avoiding mortgage insurance refinancing straight away will probably cost you close to $15000... ~$10000 for mortgage insurance, plus most places make you pay a fee of 1% of the loan oweing if you leave within a few years. Also, with that setup you may be paying stamp duty on the whole cost, not just the land cost, check that first as it will be a fair bit of money Thanks for your reply Sorry - but you have totally lost me Are you saying I could still take up the offer and then re-finance at the end of the build? Costing me $15000? I am not sure this would be worth my while? You? Re: NBG Build now Pay Later offer 4Feb 25, 2009 12:29 pm Stamp duty are calculated on the % of completion of the house. So if you pay for the house at the 100% completed stage you will not get any stamp duty saving! This means you will end up paying stamp duty base on the cost of the whole thing (house + land), this can mean $15k - 20k+... Keep in mind this is for Victoria, but other states shouldn't be much difference. Re: NBG Build now Pay Later offer 5Feb 25, 2009 12:34 pm fruitty Stamp duty are calculated on the % of completion of the house. So if you pay for the house at the 100% completed stage you will not get any stamp duty saving! This means you will end up paying stamp duty base on the cost of the whole thing (house + land), this can mean $15k - 20k+... Keep in mind this is for Victoria, but other states shouldn't be much difference. The way I understood it is that you need to be approved for finance from the start and you get the loan and the NBG make the progress payments/interest repayments for you? Re: NBG Build now Pay Later offer 6Feb 25, 2009 12:41 pm I would suggest to get all the detail figures/terms & conditions and compare with a normal construction loan.
Or even get a copy from both parties, and show it to the other side and ask to make a detail comparison for you and ask for detail explanation in "plain English" and in writing. E.g. if you need $300K to build the house, list out the detail payment schedule, interests charged, fees, insurance (to protect you!), if there's any delay/dispute with builder, what's the impact, ...etc. Lots of things can be talked about. To get your business, both will be trying very hard to convince you why their product is better. In my opinion, nothing is free in this world, when something sounds too good to be true, there's always a catch/risk somewhere. It's your money/house, you should be given proper, detail information about everything before you can make a decision that's best for you! 9 24751 Hi Mofflepop, I would recommend finding a building designer to prepare plans, they should design to your specified budget. The benefit is you can tender the project out… 9 20353 This is one of the reasons I decided to go overseas for my double glazed windows. As the builder indicated, he's worked on many upmarket builds, these were the most well… 13 19077 |